FPL proposes nuclear boost

September 18, 2007|BY MARCIA HEROUX POUNDS STAFF WRITER

Florida Power & Light Co. sees green in nuclear power.

The state's largest electric utility is proposing a nuclear boost of about 400 megawatts - enough power for about 230,000 homes - through new energy-efficient technology at its power plants at Turkey Point near Homestead and on Hutchinson Island in St. Lucie County.

FPL filed plans on Monday to add to its nuclear power capacity at existing plants by the end of 2012, if approved by the Florida Public Service Commission. Turkey Point and St. Lucie nuclear plants now produce more than 3,000 megawatts of electricity.

Adding another 400 megawatts of power generation at the two nuclear sites would cost $1.8 million, but provide long-term cost savings to customers of $122 million to $873 million, according to FPL's filing.

"It's a range of assumptions on savings, fuel costs and environmental costs in the future," FPL spokesman Mayco Villafana said.

Additional power capacity is necessary to meet demand for electricity statewide, the utility said. In its 10-year power generation plan submitted to the state earlier this year, FPL said its customer base was expected to expand to 5.9 million by 2016, from 4.4 million today.

FPL President Armando Olivera said in a statement that nuclear generation would help meet customers' needs and provide new energy "without producing carbon dioxide and other greenhouse gases that scientists have determined contribute to climate change."

One motivation is Gov. Charlie Crist's mandate that FPL and other Florida utilities generate at least 20 percent of their electricity from renewable sources, such as solar and wind. FPL would like to see nuclear qualify as well.

"We feel nuclear power is clean. It is not volatile like other fuels," Villafana said.

FPL also plans to seek approval by early 2009 to build two new nuclear power plants at Turkey Point, which would add another 3,000 megawatts of power to Florida's electricity grid starting between 2018 and 2020. FPL said it would file a separate request later with the public service commission for the new reactors.

The Public Counsel, which represents consumers in regulatory hearings, will review FPL's plans and costs. The commission will have a public hearing on FPL's request to increase nuclear capacity at existing plants, but no date has been set.

"Nuclear fuel costs much less than natural gas," Villafana said. With new technology at existing plants, "it saves fuel as well as makes the plants more efficient and reliable," she said.

Mike Bedley, a Fort Lauderdale energy consultant, said improving efficiency at the nuclear plants to increase capacity is a "great idea" if the technology proves to be as cost-effective as FPL says. But, "a new nuclear reactor is a whole different animal and a lot of money," he said.

Villafana said there are no environmental or community risks to upgrading technology at the nuclear plants. And the cost, which would be spread over time, will be analyzed by the state regulators, he said.

Residential and business customers eventually will pay for the additional capacity in their electric bills, but it's too early to estimate how much, Villafana said. FPL is under a rate freeze until 2009. After then, the company will ask for these nuclear capacity costs to be included in its base rates, according to the proposal.

"We're proposing these charges be reviewed on an annual basis, and the commission can say 'yea' or 'nay' if they don't feel the project is in the best interest of the customer," the FPL spokesman said.

The plan to add nuclear capacity at Turkey Point also has to be approved by the Nuclear Regulatory Commission. FPL has received such approval before, adding capacity to its four nuclear units in the 1980s and 1990s. Turkey Point in Miami-Dade County was chosen over eight other sites for the two new nuclear reactors planned by FPL because of the growing demand for power in South Florida and for security reasons, Villafana said.

Homestead City Manager Curt Ivy said FPL's nuclear power expansion, just outside the city, "hasn't really been debated here yet. ... I'm sure there will be some people not in favor." But overall, Ivy said, "we co-exist very well with FPL."

The utility also has other plans to expand available power. It plans to build natural gas-powered plants for Turkey Point and in western Palm Beach County.

Environmentalists have protested the new Palm Beach County plant. Several members of the Palm Beach County Environmental Coalition were arrested in May during a protest at FPL's Juno Beach headquarters.

INFORMATIONAL BOX:

What's next

The Public Counsel, which represents consumers, will review the proposal and its costs.

The state Public Service Commission will hold a public hearing. No date has been set.

FPL will submit proposal by 2009 to build two more nuclear plants at Turkey Point to add another 3,000 megawatts.